5 minute read
Growing pressure on covered crop operations
Leanne Roberts : owner – Thymebank; Director of Vegetables New Zealand Inc – Covered Crops
Decarbonisation takes time and it is not on our side
Life in the times of decarbonisation is fraught with pressure, short timeframes and big decisions for covered crop growers. The government’s aspiration for decarbonisation is causing significant increases to the Emissions Trading Scheme (ETS) and uncertainty of supply of fuels such as gas. This creates a perfect storm of high costs, risk and uncertainty for covered crop operations. Support to transition the covered crop industry through decarbonisation plans has been happening through a staggered approach with assistance from groups such as the Energy Efficiency and Conservation Authority (EECA). The focus has initially been to assist large-scale operations, in some cases funding newer or alternative fuels that were previously considered experimental in New Zealand. While some larger operators have been able to make a start on decarbonisation planning and implementation, the industry as a whole is at the beginning of this journey.
Many covered crop operations, irrespective of size, are still reliant on using coal and gas until their decarbonisation plans, infrastructure and technologies are in place. Unfortunately, there is a lag between the alternative technologies and decarbonisation of operations being in place and the affordability and availability of maintaining current fuels and technologies.
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The result is uncertainty of fuel and operational viability in the interim. This will have consequences on the yearround production of fresh vegetables as covered cropping operations are largely responsible for maintaining supply of fresh vegetables throughout the off-seasons. This will have a direct impact on the affordability of fresh vegetables produced in New Zealand.
There is further concern that a rush to adopt electricitybased technologies will cause problems for both the electricity infrastructure network as well as decarbonisation. At present, the network is not equipped to cope with the extra power operations will require to run heat pumps and other electricity-based technology. Aside from the significant upgrades to infrastructure required to meet the demand, it is likely coal would need to be burned to create the electricity required to run covered cropping operations. This is counter to the government’s zero carbon goal and begs the question of the point of large-scale transition to electricity-based technologies. Cost of transition is a major consideration for covered crop businesses. With smaller operators looking at eye-watering quotes to convert current technologies, many are scratching their heads about how to make the change to alternative technologies and fuels at a cost which is viable for business and within the government’s aspirational timeframes. While there has been some government assistance made available through funds such as Government Investment in Decarbonising Industry (GIDI) and EECA, there is significant concern among growers that the overall economics of transition will undermine financial viability and kill the industry. Many alternatives that have been advocated may work in theory, but in practice are not economically viable. Other alternatives that may be more practical and viable require a longer timeframe to build and have up and running. Meanwhile, the clock is ticking on the government’s decarbonisation countdown.
Significant investment required
There is significant investment required to build a covered crop operation. In the scoping phase, many growers have researched the main risks to their operations and made investment decisions based on factors such as appropriate fuels and fuel availability. For many it feels as if they have been let down by the lack of assistance and support, given the unrealistic timeframes and costs associated with the government’s decarbonisation goals. Larger covered cropping operations have been able to progress their decarbonisation journey but are not in the position to have their current fuels and technologies made unavailable. There is concern that not all operators are being given the help needed to make realistic decarbonisation plans. Smaller and medium operators are struggling to understand what is required and where they can go for impartial help. Many are only just now able to access practical assistance to identify options, however there is a lot of confusion about what help is available, and how to access that help. Meanwhile, the industry is keenly aware we are heading into the winter period when there is the greatest need for reliable and consistent heating. Winter is not the time of year many growers would be looking at trialling or implementing new and untested technologies onsite without the safety net of having their existing technologies remaining available to use. This year ETS is tipped to be at its highest – over $50 per tonne. This has a massive impact on the ability of covered crop operations to produce fresh vegetables throughout the off-season. Coupled with huge increases to other growing inputs such as mediums, seeds and fertilisers, many growers are reconsidering the viability of year-round production in the current climate.
Covered crop growers of all sizes need more clarity about what they need to do to decarbonise, lenience with timeframes, and help to get this achieved. In many cases the will and desire to make the change is there, but the ability to get the changes in place within the government’s timeframes feels like an impossible task.
